Madagascar Inks Contract For 120MW Hydro Scheme
A 25-year concession agreement was signed with the developer consortium.
The government of Madagascar has signed the implementation agreement for the Volobe Amont hydropower project.
A 25-year concession agreement was signed with the developer consortium Compagnie Générale d'Hydroelectricité de Volobe (CGHV) at a ceremony on 26 May. At the same time, CGHV concluded a power purchase agreement with state-owned utility Jirama.
The 120MW plant is to be built on the Ivondro River in the country’s eastern region and is expected to be operational in 2028. The total investment cost is estimated at Euro 550 million (US$594 million).
The project is being executed under Madagascar’s Low-Cost Development Plan. The aim is to reduce the marginal cost of electricity to one-fourth of the current unit cost price and improve the country’s balance of payments by reducing fuel imports.
The government says more than 2 million people, or 8% of the population, will benefit from the Volobe Amont scheme.
The project is expected to create about 1,500 direct and indirect jobs. It should also contribute to the development of the Volobe region through the repair of the 26km primary access road and the construction of a 150m bridge across the Ivondro River.
Two other hydropower schemes are also under development in Madagascar: the 192MW Sahofika project and the 64MW Ranomafana scheme.
A major transmission and distribution project is also under way to interconnect and strengthen the country’s grids and to electrify rural areas along the high-voltage corridor.
According to the government, 37 solar power installations are also being built across the islands.
Officiel !✅ Les contrats du projet Volobe Amont sont signés ! ✍️— Axian Group (@AxianGroup) May 27, 2023
Ce projet permettra à 2 millions de #Malagasy d’accéder à une électricité fiable et abordable avec une production de 750 GWh par an soit l'équivalent de 40% de la consommation annuelle nationale actuelle pic.twitter.com/3Ov0nKnxHE
Top photo: Contract signing ceremony (Supplied)